Gold Resource (NYSE-AM: GORO) has inked a deal to acquire Aquila Resources (TSX: AQA) in a US$30.9 million transaction that will create a mid-size North American precious and base metals producer.
The Colorado-based miner is buying all of Aquila's shares for 0.0399 of a GORO share per Aquila share. The exchange ratio represents a consideration of US$0.09 per Aquila share or US$30.9 million, reflecting a 12.5% premium based on the closing price of Aquila and Gold Resource shares on September 3.
Once the transaction closes, existing Gold Resource and Aquila shareholders will own roughly 85.1% and 14.9% of the combined company, respectively. The companies says the transaction should close in November.
The new miner is expected to become a new intermediate gold producer following the start of production at Aquila's Back Forty gold, zinc and copper project in the U.S. state of Michigan.
Back Forty, Aquila's flagship project, has total measured and indicated resources of 18.27 million tonnes grading 1.89 grams gold per tonne, 24.09 grams silver per tonne, 0.32% copper, 0.26% lead and 3.03% zinc for contained metal of 1.1 million oz. gold, 14.15 million oz. silver, 127.3 million lb. copper, 103.8 million lb. lead and 1.22 billion lb. zinc.
Total inferred resources stand at 1.2 million tonnes grading 3.71 grams gold per tonne, 49.24 grams silver per tonne, 0.38% copper, 0.47% lead and 1.23% zinc for contained metal of 142,500 oz. gold, 1.89 million oz. silver, 10.1 million lb. copper, 12.5 million lb. lead and 32.3 million lb. zinc.